ITCI

Intra-Cellular Therapies Inc

Healthcare


Presented:07/18/2017
Price:$12.30
Cap:$0.53B
Current Price:$74.71
Cap:$7.89B

Presented

Date07/18/2017
Price$12.30
Market Cap$0.53B
Ent Value$0.34B
P/E RatioN/A
Book Value$8.13
Div Yield0%
Shares O/S43.39M
Ave Daily Vol796,869
Short Int17.18%

Current

Price$74.71
Market Cap$7.89B
Intra-Cellular Therapies, Inc. is a biopharmaceutical company, which focuses on the discovery and clinical development of innovative, small molecule drugs that address underserved medical needs in neuropsychiatric and neurological disorders by targeting intracellular signaling mechanisms within the central nervous system, or CNS. Its lead product candidate, ITI-007, is in clinical development as a first-in-class treatment for schizophrenia. The company also includes pre-clinical programs that are focused on advancing drug candidates for the treatment of cognitive dysfunction, in both schizophrenia and Alzheimer's disease, and for disease modification and the treatment of neurodegenerative disorders, including Alzheimer's disease. Intra-Cellular Therapies was founded by Paul Greengard on August 29, 2013 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Intra-Cellular Therapies Inc (ITCI)

Highlights

The presenter is long shares of Intra-Cellular Therapies (ITCI) at $12, and said he thinks the stock could recover a potentially meaningful portion of its losses seen in the wake of the disastrous Phase III trial readout for lumateperone (ITI-007) in schizophrenia. ITCI shares fell >60% in late September (2016) when ITI-007 was unsuccessful compared to placebo, and to make matters worse, a third set of patients was given risperidone and saw their symptoms improve. Management has continued to work with the FDA, but has had issues communicating with the Street/ investors recently, which has suppressed the recovery. Underpinning ITCI’s value is a relatively sound balance sheet with just over $8 per share in cash, and a pipeline focused on central nervous system (CNS) disorders, including schizophrenia, Parkinson's, and Alzheimer's. In his opinion, ITI-007 still may be approved, and given the difficulty practitioners have treating schizophrenia, an atypical antipsychotic with a favorable side effect profile would be a welcome option. Any positive news related to progress with the FDA and a mid-2018 NDA filing could drive the stock to the low-to-mid-$20s.

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Idea Discussion

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